Tuesday, October 13, 2009

Tenaga Nasional Berhad (TNB) is planning to construct and operate a 212MW Hulu Terengganu Hydroelectric Project.

EXECUTIVE SUMMARY
1.0
INTRODUCTION
Tenaga Nasional Berhad (TNB) is planning to construct and operate a 212MW Hulu
Terengganu Hydroelectric Project. The proposed Project comprises two storage reservoirs
namely the Puah Reservoir (6,000 ha) and Tembat Reservoir (130 ha), two dams (one
each at Sg. Terengganu Mati and Sg. Tembat), an underground power house, and an 802
m diversion tunnel between the Tembat and Puah Reservoirs. This hydroelectric
development will generate an average of 406 GWh peaking energy per annum to the
national grid.
Timbers will be extracted from the proposed 6,130 ha of the inundated area (Tembat and
Puah Reservoirs) and the Terengganu State Government has further decided to extract
timber from the 12,620 ha of the proposed catchment areas around the Tembat and Puah
Reservoirs.
The proposed project is expected to be completed by the end of 2012.
2.0
LEGAL REQUIREMENT
The proposed Hulu Terengganu Hydroelectric Project and the logging of 18,750 ha of
indundated and catchment areas are prescribed activities under the following schedules of
the Environmental Quality (Prescribed Activities) (Environmental Impact Assessment)
Order, 1987 as follows:
6.
Forestry
(b) Logging or conversion of forest land to other land use within the
catchment area of reservoirs used for municipal water supply,
irrigation or hydro-power generation or in areas adjacent to state and
national parks and national marine parks.
(c) Logging covering an area of 500 hectares or more.
13.
Power Generation and Transmission
(b)
Dams and hydroelectric power schemes with either or both of the
following:
i. Dams over 15 meters high and ancillary structures covering a
total area in excess of 40 hectares
ii. Reservoirs with a surface area in excess of 400 hectares.
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3.0
STATEMENT OF NEED
The needs for the hydroelectric power plants are as follows;
• To meet Peak Power Demand
The electricity load profile in Peninsular Malaysia has a large portion of base load,
approximately 10,000MW and about 4,000MW of peak demand. To provide for a
safe and reliable power system, electricity demand must be met by a combination of
base-load and peaking power plants.
Base load demand is usually supplied by power plants that operate on long duty
cycle providing power output at a constant load. Most of these power plants are
either coal-fired steam plants or gas fired combined cycle plants.
Peaking plants usually operates on short duty cycle at varying loads. These stations
have fast start-up capability that would be able to come into the system in a very
short time and would be taken off once the peak periods are over.
Currently, the types of power plants that are capable of providing peaking duty, in
terms of technology and economics are the open cycle gas turbines (OCGT) and
hydroelectric power plants.
• Reliable Fuel Source
In ensuring effective and reliable power plants, their fuel source should be readily
available and not subjected to market volatility and availability. The price of fuel (oil)
has increase rapidly in the last few years, and once peaked at USD147 per barrel in
July 2008.
The limited supply of gas by Petronas for the power sector, capped at 1,350 mmscfd,
means that there will be very little spare capacity to meet additional requirement for
the power sector. Water, on the other hand is relatively abundant, renewable and
cheap. It is therefore the strategy of the Government and TNB to meet the growth in
base-load and peak-load power by non-gas fuel sources.
Coal-fired thermal plants (Tanjong Bin, Jimah and Manjung) and possibly hydro
resources from Sarawak will be expected to meet base-load demand growth in the
next 10 years. As for peak-load, the only economic non-gas option will be to harness
the remaining hydroelectric resources in Peninsular Malaysia.
• Reducing Carbon Emission
Another advantage of opting for hydropower instead of OCGT is the potential
reduction in carbon emission. The Hulu Terengganu Hydroelectric Project is capable
of generating an annual energy of 406 GWh which can be translated to an equivalent
carbon reduction of approximately 250,000 tons/year
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4.0
NO PROJECT OPTION
Without the Project, TNB’s dependence on fossil fuel, primarily gas and coal for generating
energy will continue. Since the cost of fossil fuel has been on the increase for the past ten
years and particularly in recent years, the cost of generating energy will increase and
ultimately the users will have to pay more for every unit that they use.
This Project will also provide the peaking power required to ensure the stability and security
of the system.
5.0
PROJECT DESCRIPTION
5.1
Project Location
The proposed Project area is located at the north of existing Kenyir Dam in Kuala Berang,
Daerah Hulu Terengganu, Negeri Terengganu Darul Iman. It is about 50km from Bandar
Gua Musang – Hulu Terengganu roadway, and about 65km west of Kuala Terengganu. The
coordinates of Puah and Tembat dams are N 05o 09’ 6.1”, E 102o 35’ 9.8” and N 05o 13’ 7.0”,
E 102o 36’ 6.8” respectively. The project area is located about 20 km away from Saddle
Dam A of Tasik Kenyir which is situated to the North-West of Kenyir dam.
5.2
Project Components
The Hulu Terengganu Hydroelectric Project can be classified into three geographic clusters.
These clusters are:
(1) the Puah Dam and its associated Works;
(2) the Tembat Water Transfer Scheme;
(3) the Power Station and Switchyard Complex.
The salient features of the proposed Project are as follows:
• Two reservoirs known as Puah Reservoir (6,000 ha) and Tembat Reservoir (130 ha);
• Two dams; one a 78 m high earth-fill dam (Puah) on the upper Sg. Terengganu Mati
just downstream of its confluence with the Sg. Puah and the other a 30 m high roller
compacted concrete (RCC) dam on Sg. Tembat;
• An underground powerhouse having 212 MW (2 x 106MW) turbine/generator units.
• Two intakes, one each at Tembat Reservoir and Puah Reservoir;
• Two unlined low pressure diversion tunnels to carry flows from the Tembat reservoir
to Puah reservoir (802 m) and Puah reservoir (450 m) to the drop shaft;
• Two surge shafts near the top of the drop shaft;
• Two high pressure, steel lined penstock tunnels to carry flows from the drop shafts to
the powerhouse;
• A 1.3 km long, concrete lined, free flow tailrace tunnel to carry flows downstream from
the powerhouse to the Tasik Kenyir;
• A 600m long access tunnel to the powerhouse;
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• A switchyard located above ground near the access tunnel portal;
• Approximately 10 km (estimated based on the existing roads) of new access road to
the dam sites, access tunnel and power house; and
• A 2.2 km long transmission line, which will connect the power station to the existing
Kenyir-Tanah Merah line.
6.0
EXISTING ENVIRONMENT, POTENTIAL IMPACTS AND PROPOSED
MITIGATING MEASURES
6.1
LANDUSE
The study area has varied landuse types, consisting of primary tropical forest, agriculture,
aquaculture, settlements, resort and recreational facilities, water bodies and infrastructures.
Forest occupies the largest area, followed by water bodies. Forest occupies the largest
area, followed by the lake. Agriculture is confined to a small area, to the north of Pengkalan
Gawi. Settlements are located along the main road to Pengkalan Gawi. They are surrounded
by rubber and oil palm small holdings and orchards.
Project implementation will reduce the forested area as a result of the formation of two new
lakes and the construction of dam, power station and access roads. This impact on the
landuse is permanent.
The formation of the two lakes may lead, at a later stage, to the establishments of resorts,
chalets and other tourist facilities. It is suggested that development of tourism facilities take
into consideration the area’s carrying capacity.
6.2
GEOLOGY AND SOIL
The geomorphological patterns of the study area consist of undulating hilly and mountainous
terrain. The highest area is represented by Gunung Lawit to the north at 1518m above sea
level. There are other hilly terrains including Gunung Batil (1445 m) and Gunung Susu Dara
(1452 m). The elongated terrains at the western part with north-south trend is known as
Granit Banjaran Sempadan while moderately high and undulating terrains between
mountainous terrains are dominated by metasedimentary rocks. The two main lithologies
consist of igneous and metamorphic rocks. In general, an acidic intrusive granitic rock
covers approximately 40% of the study area followed by metasedimentary rock (about 30%).
Meanwhile, the rest of the area is covered by other rocks such as volcanic, limestone and
sedimentary rocks. The metamorphic rocks include phyllites, schists and metasandstone of
possibly Carboniferous age while the sedimentary rocks consist of shale/mudstone and
small amount of limestone and conglomerate of Permian to Triassic age.
The anticipated geomorphology and geological impact of the project are the permanent
landscape change, and disturbance on rock stability and seismicity caused by the cut and fill
activities, drilling and quarrying of rock and reservoir formation. Seismic activity should be
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monitored and innundation should be carried out slowly to avoid great disturbance to the
fault structure underneath the dam.
Soils in the area are formed from parent rock of granite, metasedimentary and volcanic
rocks. The residual soil from the weathering of granitic rock is characterized by reddish
yellow in colour with texture of sand while soil developed from metasedimentary and
volcanic rocks give finer texture with yellowish colour. The pH value of soils in the study area
is low. The organic content ranges between low and moderately high. Soil at Tembat Dam is
more sensitive to erosion compared at Puah Dam which is due to their higher elevation and
steeper slope.
The existing average sediment yield for Sg.Tembat and Sg.Terengganu Mati are 84.5
tonnes/ha/year and 37.02 tonnes/ha/year, respectively. However, the rate of soil loss for
the worst case scenario (clear felling of trees) is very high at an average of 1,456.8
tonnes/ha/year 1,769.7 tonnes/ha/year for Sg. Tembat and Sg. Terengganu Mati
respectively. To reduce the erosion impact, selective logging is proposed for the catchment
area and buffer zones should be introduced along rivers of order 3 and 4. This method of
logging will reduce the rate of soil erosion by almost 80%. The predicted soil loss when
selective logging is adopted is 255.4 tonnes/ha/year for Sg. Tembat and 309.7
tonnes/ha/year for Sg. Terengganu Mati.
6.3
CLIMATE
The climate is hot and humid with high average annual rainfall, temperature, evaporation
and humidity. Humidity, temperature and evaporation show very little variation. The humidity
is about 80 % all year round and temperature range from 21 to 32OC. The average annual
rainfall depth at the project area is approximately 4138.30 mm ranging from 2517 to 8714
mm over 20-years; the maximum rainfall was recorded in 2001 while the lowest is year 1996
recorded at 2517 mm.
The development of future reservoirs will act as a potential evaporating surface that
decreases the surface temperature, cools the lower atmosphere, decreasing upward motion,
and increasing sinking air mass. This, however may not have a significant impact on local
climate as the future Tembat and Puah reservoirs are relatively small compared to Kenyir.
6.4
SURFACE HYDROLOGY
There are two main river catchments in the study area, namely Sg. Terengganu Mati and Sg.
Tembat. The Sg. Terengganu Mati catchment comprises more than 13 major tributaries; Sg.
Rat, Sg. Lata, Sg. Buluh, Sg. Kura, Sg. Rusa, Sg. Limbang Besar, Sg. Limbang Kecil, Sg.
Jalang Kecil, Sg.Ladang, Sg. Rang, Sg. Sireh, Sg. Jalang and Sg. Puah. Meanwhile, Sg.
Tembat catchment consists of five major river tributaries: Sg. Lawang, Sg. Anak Tembat, Sg.
Ayur, Sg. Tedung and Sg. Ayub. The distance of Sg. Terengganu Mati from their headwater
is 55 km long and 30 km long for the Sg. Tembat. Total catchment size for Sg. Terengganu
Mati is estimated to be 410 km2 and 101 km2 for the Sg.Tembat Catchment. Average runoff
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for Sg. Terengganu Mati is 2,040 mm and 2,200 mm for Sg. Tembat. The maximum daily
flow for Sg. Terengganu Mati is 40.00 m3/s, mean daily flow is 28.00m3/s and the minimum
flow is 15.00m3/s. The maximum daily flow for Sg. Tembat is 5.50 m3/s, while the mean and
minimum daily flows are 2.50 and 1.00 m3/s respectively. Based on field measurement, daily
flow of Sg. Terengganu Mati ranges from 0.146 m3/s to 16.60 m3/s with range of velocity
from 0.10m/s to 2.20m/s. Daily flow of Sg. Tembat range from 3.50 m3/s to 5.20 m3/s with
range of velocity from 0.18 m/s to 0.915 m/s. During high flow condition, the figures increase
2 to 3 folds, and their range from 32.60 m3/s to 88.87 m3/s for Sg. Terengganu Mati and
figures increase 3 to 5 folds for Sg, Tembat, it ranges from 11.84 m3/s to 22.75 m3/s.
The minimum flow analysis was performed to determine the magnitude and frequency of low
flow for the proposed project site. Analysis of minimum flow was determined based on three
methods: 1) Mean Annual Minimum flow (MAM), is 4.520 m3/s for Sg. Terengganu Mati and
0.976 m3/s for Sg. Tembat. 2) 10% of the average annual flow; 4 m3/s for Sg. Terengganu
Mati and 0.55 m3/s for Sg. Tembat and 3) Based on the SMEC Engineering study, minimum
daily flow was 3.3 m3/s (Sg. Terengganu Mati) and 0.80 m3/s for Sg. Tembat.
The hydrological impacts associated with soil investigation, collection of data and lines
cutting are expected to be minor or no significant impact during pre-construction. During dam
construction, major activities such as earthwork and site clearing, river diversion,
construction of access roads and construction of the Puah and Tembat dams are expected
to alter the characteristic of the river regime. Increase of surface runoff leads to increase in
flow and river banks erosion. The impact can be mitigated by preparing and implementing
erosion control plan. The diversion channel should be designed to take into account the
maximum capacity of the diverted channel to ensure reduction in water velocity. The
alignment of the diversion should be optimized so that the length of dried up river
immediately after the dam is minimized
Bucking, skidding and hauling, landing and loading of the timbers during logging operation
will have the effect of increasing surface runoff as a result of a reduction in the capacity of
the area to absorb rainfall and reduction in infiltration. This change in the flow regime will
increase river siltation and affect the morphology of the river system such as the reduction in
the widths and depths, and increase in the velocity of flows in the rivers that will eventually
affect the riparian ecosystems, vegetation, nutrient and food chains for the aquatic fishes
and benthos. Selective logging method is recommended for the catchment area that will not
be innundated. A 30m river buffer where no logging is allowed must also be maintained to
the impact of erosion.
During reservoir filling and dam operation, the river stretches downstream of the dam (Sg
Tembat-4.14km and Sg Terengganu Mati-4.82km) will be dried up if no water is released
during reservoir filling. The river ecology will be completely destroyed. To mitigate the
impact a minimum flow of 1.0 m3/s for Sg Terengganu Mati and 0.5 m3/s for Sg Tembat is
recommended.
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6.5
WATER QUALITY
In this study, 23 stations were selected at Sg Terengganu Mati and Sg Tembat and their
tributaries to assess the existing water quality. Samples were taken in July 2008 and
analysed based on standard methods suggested by American Public Health association
APHA (1995). The laboratory analyses were carried out by accredited laboratory at ALS
Technichem (M) Sdn Bhd (MS 120/IEC 17025, SAMM No. 147).
The values of water quality parameters recorded at Sg Terengganu Mati are good. Based
on the General Rating Scale for the Water Quality Index (WQI), Sg Terengganu Mati is
classified as clean (Class I). The result for Sg Tembat indicates that the existing water
quality is also good (Class I).
Two water quality impact “scenarios” were simulated for this study, namely (i) the impact of
logging activity based on clear felling and selective logging methods, and (ii) the impact of
Puah-Tembat dam construction with respect to river carrying capacity.
In the worst case scenario (clear felling), TSS concentration during high flow along Sg
Terengganu Mati is predicted to increase to Class IV and V (INWQS). The river carrying
capacity is considered as sensitive with low carrying capacity. For Sg Tembat the TSS
concentration along the river falls to Class III at middle stream and Class IV at upstream and
downstream stretches during high flow. Again, the river carrying capacity is considered as
sensitive with low carrying capacity.
For selective logging, the value of TSS at Sg Terengganu Mati during high flow will reduce to
Class III at the upstream and middle stream while Class IV is expected in downstream sites.
The river carrying capacities at these stages are considered as sensitive (high flow) and
moderately sensitive (low flow). At Sg Tembat, TSS concentration during high flow is
expected to fall to Class II and Class III (>30 mg/l; <80>
downstream sites. In terms of river carrying capacity, the river is categorized as moderate
sensitive to sensitive zones.
Scenario (ii) involves dam construction at both Sg Terengganu and Sg Puah Dam. The
regulated flows at downstream of the proposed dams (4.82 km and 4.18 km stretches) are
designed at 1 m3/s and 0.5 m3/s for Sg Terengganu Mati and Sg Tembat. Simulation results
indicate that for Sg Terengganu Mati:
• BOD - Class II (moderately sensitive)
• DO - Between Class II (moderately sensitive) to IV (sensitive)
• TSS – Between Class II (moderately sensitive) to Class IV (sensitive)
For Sg Tembat, the simulation results are:
• BOD - Between Class II to III (moderately sensitive) and Class I (less sensitive)
• DO - Between Class II to III (moderately sensitive)
• TSS - Between Class III to IV (sensitive) and Class I (less sensitive)
Logging and dam construction are the two activities with the most significant impacts on
water quality. Logging and dam construction will increase soil erosion and siltation, and if
not mitigated will significantly reduce the river water quality. Selective logging is
recommended for the catchment area that will not be inundated. In addition, a 30 m buffer
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where no logging is allowed must be maintained for rivers of order 3 and above. At the dam
construction sites, erosion and sediment control plans that incorporate silt traps and
temporary drains must be prepared and implemented to minimize adverse water quality
impact.
This study also notes that without water being released from the dam, the river downstream
of the dams (4.14 km for Sg Tembat and 4.82 km for Sg Terengganu Mati) will be dried up.
It is therefore required that EFA discharges must be maintained at 1.0 m3/s and 0.5 m3/s for
Sg Terengganu Mati and Sg Tembat respectively. With this discharge, the predicted water
quality parameters at 4.82 km for Sg Terengganu Mati are Class II for BOD, DO and TSS
with river carrying capacity of moderate sensitive. The predicted water quality parameters at
4.14 km for Sg Tembat are Class I (BOD and TSS) (less sensitive) and Class II (DO)
(moderate sensitive).
At the peak of construction activity, the number of workers could reach up to 1,500 people.
Without proper management, raw or partially treated sewage can lead to water quality
problems when directly discharged to water courses. It is recommended that the portable
sewage system to be used to avoid risk of contamination.
6.6
AIR QUALITY
In general, the existing air quality at the study area is considered good. All the parameters
(PM10, TSP, CO, NOX and SOX) measured are well below the Malaysian Recommended Air
Quality Guidelines Criteria. The anticipated impacts from the project activities are mainly
dust generation from quarrying and blasting, earthworks and vehicles movements on dirt
roads. Nevertheless, the impacts are minimal and only localized within project construction
sites and along access tracks.
6.7
NOISE
The day-time LAeq noise levels at all monitoring locations ranges from 44.2 dBA to 59.0
dBA. The day-time LAeq noise levels recorded outside of project area (the residential area)
are higher than the levels obtained at the proposed project area. The day-time LAeq noise
levels at the residential area was influenced by transient noise from vehicular traffic whilst
noise contributors within the project area were from diurnal insects activities. The night-time
LAeq noise levels at all monitoring locations ranges from 49.5 dBA to 54.6 dBA.
The noise generated during the construction phase is expected to increase the existing
noise level. However, the nearest residential are is about 30 km away from the proposed
project site. Therefore, any adverse impact from noise would be insignificant. The movement
of heavy vehicles and long trailers for carrying construction equipment and materials to the
construction site may increase the existing noise level along the routes. However, by limiting
the flow of these vehicles during the day time only will minimise the impact of noise on the
residents along the transportation routes.
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6.8
FLORA
All study locations indicate a high richness of vegetation species whereby the taxonomic
composition of higher plants in the surveyed area indicates a total of 234 species from 50
plant families at Sg. Terengganu Mati, 152 species of high plants from 47 families at Sg.
Kura, 388 plant species of 89 families at Sg. Limbang, 166 species of 55 plant families at Sg.
Puah, 205 higher plant species from 56 families at Puah Dam Site and 263 species in 53
families of higher plants at Sg. Tembat.
Tree species diversity calculated using Shannon-Wiener Diversity’s Index (H’) ranges from
4.12 to 4.94 indicating high diversity. Total biomass of trees in all study plots varies from
458.1 t/ha to 914.1 t/ha.
Timber species found in the undisturbed forest include Shorea (Meranti, Balau),
Dipterocarpus (Keruing), Hopea (Merawan), Vatica (Resak) and Anisoptera (Mersawa). The
secondary or disturbed forest are mainly dominated by species from the families of
Rubiaceae, Euphorbiaceae, Annonaceae, Moraceae, Myrtaceae, Fagaceae, Burseraceae,
Ebenaceae and Lauraceae.
The perennial weed species are very common in the disturbed forest which include
Chromolaena odorata, Vernonia cinerea, Mikania micrantha, Mimosa pudica, Urena lobata,
Sida ramiflora, Spemacoce spp.. Bamboos of Schizostachyum sp. and Dendrocalamus sp.
were also found abundantly, indicating the occurrence of disturbances of the surveyed area.
In the riparian habitats, Dipterocarpus oblongifolius (Keruing Neram) is abundant along Sg.
Limbang and Sg. Tembat. Other riparian tree species include Pometia pinnata
(Sapindaceae), Antidesma silicinum (Euphorbiaceae), Dysoxylum angustifolium (Meliaceae),
Peronema canescens (Verbenaceae), Syzygium salictoides (Myrtaceae), Neolamarckia
cadamba, and Neonauclea pallida (Rubiaceae).
Semi-aquatic and aquatic plants were also noted in most streams which were mainly
represented by the Cryptocoryne sp., Homalomena sp., Pithospatha sp., Alocasia sp.,
Rhaphidophora sp. and Schismatoglottis sp.
The epiphytes were mainly of the lycopids (Huperzia nummulariifolia, H. carinata, H.
phlegmaria, H. pinifolia), orchids (Eria spp., Dendrobium spp.), and fern of Platycerium
ridleyi; whilst the herbaceous such as Hanguana malayana, Piper spp., Begonia spp.,
Sonerila spp., were seen on the forest floor at most study areas.
The composition of fern and fern-allies in all study areas indicate similar representatives of
species in the families Adiantaceae, Aspleniaceae, Blechnaceae, Cyatheaceae,
Osmundaceae, Selaginellaceae, Dryopteridaceae and Polypodiaceae.
From overall list of recorded tree species (excluding shrubs, herbaceous, epiphytes,
creepers and saprophytes), 94 species were identified as having conservation status
according to the IUCN Redlist Data Book. Almost all dipterocarps (Dipterocarpaceae) are
categorized as Endangered (En) and Critical Endangered (CR), whilst only a small number
of non-dipteocarps are listed in these categories. Most species are categorised as Least
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Concern (LC) and Vulnerable (VU). For non-trees, most orchids (Orchidaceae), Begonia
spp. (Begoniaceae) and Huperzia spp. (Lycopodiaceae) are considered as threatened
species because these species are having very high market demand, yet they are not easily
found.
The presence of the biggest flowers in the world, Rafflesia sp. at the Sg. Tembat area is of
conservation interest; however, the conservation of this species is a difficult task. Moreover,
the ginger species called ‘Kantan Hutan’ (Etlingera terengganuensis) found at Sg. Tembat is
also of concern because the species is endemic to the State of Terengganu.
Impacts on vegetation communities during pre-construction stages are mainly associated
with activities of construction of access road, site clearing (workers’ camp) but these
activities will only result in relatively minor loss to forest floor vegetation and weed species.
No mitigation on flora species is needed because most affected species are common.
The activities during construction that are predicted to have negative impacts on forest flora
are site clearing, excavation, tunneling and earthworks. These activities require the removal
of vegetation which will cause permanent loss of vegetation species at the work areas,
tunnel and roads. The loss is permanent.
During operation, stream regulation will have direct impact on riparian habitat and in
particular on the riparian vegetation. Adverse effects are expected for some of the common
riparian species. Nevertheless, species such as Keruing Neram (Dipteocarpus
oblongifolius), which can only be found on the banks of fast-flowing rivers in the habitats is of
conservation interest. The juveniles, seedlings and saplings of this species should be
salvaged for its survival.
6.9
TERRESTRIAL FAUNA
Terrestrial fauna which comprises terrestrial large and small mammals, bats and birds were
investigated at 16 study sites representing two main catchments; Petuang and Tembat. The
sites were also selected based on topographic and habitat type. From this study, a total of
28 large mammal species comprising of 14 families from 5 orders were recorded from these
two catchments. This is about 37 % of the total large mammal species reported in Peninsular
Malaysia. From this number, 6 species are Artiodactyls (Ungulate), 11 are Carnivors (cat
and civets), 2 are Perissodactyls (Rhinoceros), 8 are Primates (Monkeys), and one is
Proboscid (elephant).
All the five big mammal species that need conservation are present in this area. Those
species are Sumatran Rhinoceros, Tiger, Elephant, Tapir and Malayan Gaur. Among these
species, Sumatran Rhinoceros has the highest conservation priority and urgently need
special attention. However, Sumatran Rhinoceros were reported found only once at the
north of Site PA1 in 2003 and 2006 but no signs were found in 2007. The same area was
revisited in July and August 2008 by two teams of experts and they found old foot prints and
wallows possibly left for more than three months. The next most important species that need
attention is Gaur or Seladang. Seladang were reported and found scattered within the
catchment until further south to Taman Negara. Elephant is possibly the species that will be
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affected most from the project. The reconnaissance survey indicated that tapir and tiger are
still commonly seen and reported by loggers and locals inhabiting the catchment areas.
For small mammals, a total of 22 species comprising of 7 families from 4 orders were
recorded from these two catchments. This is about 40 % of the total small mammal species
(excluding bats) reported in Peninsular Malaysia. From this number, one species each for
Demopteras (Clugo), Pholidotas (Pangolin), and Scandentids (Treeshrew), 19 are Rodents
(rats and squirrels). Among these species only 6 are listed under Totally Protected, and 2
species are listed under Protected according to local Wildlife Act (1972).
Bats are more diverse than other mammal groups with 44 species comprising of 5 families.
From this number 32 species are insect bats (Hipposideridae, Rhinolophidae, and
Vespertilionidae) and 11 are fruit bats (Vespertilionidae). For insect bats, the species
recorded here is about 34 % and for fruit bats is about 55% of the total bat species reported
in Peninsular Malaysia. In overall diversity, Hipposiderids are representing by 9 species,
Rhinolophids by 8 species, Vespertilionids by 15 species, Pteropodids by 11 species and
Molossid by 1 species. Among bat species only 7 are considered important for conservation
(6 are catogarised as Near Threatened and 1 as Vulnerable) based on IUCN Red Data Book
and none of bats are locally protected except Pteropus spp.
Finally birds also considered relatively diverse with 285 species from 47 families. This is
about 38 % of the total bird species reported in Peninsular Malaysia. The bird community at
the study area is dominated by family Timaliidae followed by Dicruridae, Muscicapidae,
Nectariniidae, and Pycnonotidae the common families found in pristine lowland forest.
Among these species 156 are Totally Protected (55%) and 1 species is Protected according
to local Wildlife Act (1972).
The general impact of the proposed logging based on “selective logging” procedures on
wildlife is predicted to be relatively low on birds and bats but significant on mammals (small
and large). The impacts of the proposed project on the terrestrial fauna (small and large
mammals), bats and birds are predicted to be minimal during pre-felling activity and no major
mitigation measure is required. The activities during pre-felling stage are generally
associated with survey and investigation which include the presence of workers in the field,
clearing several areas for camps, and tracks, and transportation of equipments to the work
areas. However the activities during timber felling and transportation (including skidding) are
predicted to have direct impact on the wildlife activities (e.g. foraging activities). Timber
felling and clearing of forest would kill wildlife and destroy wildlife habitat (nests and food
resources). Individuals that can escape will find refuge in the nearby habitat. Species that
require large area (such as elephant) may be displaced and encroached into plantations and
villagers. Encroached individuals can cause damage to plantations and post some threat to
human safety especially towards the eastern and western parts of the catchment.
Specialized species that require specific habitat such as Sumatran Rhinoceros may have
problem finding new habitat. Reduction in population of wildlife especially small and medium
size animals may cause local extinction. Further, easy access to the interior of the
catchment area via available logging roads will increase hunting and poaching activities.
The impacts of logging on wildlife in general are considered high (as the area is three times
bigger than area requires for development of two dams) and require proper mitigation
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measures. Short and long terms measures for maintaining the biological diversity and
reduce the wildlife conflicts are proposed. The proposed short term mitigation measures for
maintaining high biological diversity (conservation) includes a) choosing a minimal
destructive logging method (e.g. selective logging not total logging), b) logging conducted in
phases, gradually from the dam site upstream, c) inspecting for the presence of wildlife
within logging area, d) reporting on the presence of endangered wildlife species within the
logging area and the presence of poachers (locals and foreign) to the PERHILITAN, e)
closing and dismantling all logging roads and bridges to prevent easy access by poachers, f)
enforcement, g) educating the public and h) habitat rehabilitation.
The short term mitigation measures to reduce human-elephant conflict (HEC) are also
proposed which include constructing electrified fences and trenches along the border of the
plantations with the forest reserve (e.g. Tembat FR). If all measures are not effective,
translocation is proposed by catching and relocating the animals to a new site such as
Taman Negara. The cost of translocation however is very high; between RM 20,000 to RM
40,000. This cost should be provided by the Terengganu State Government and partially by
TNB through Elephant Fund. The number of elephants that need to be translocated is
estimated between 6 to 10 individuals. Other wildlife may not cause any conflict but
increased road kills along the highways between Tasik Kenyir to Terengganu-Kelantan
border is to be expected.
The long term mitigation measures are also proposed to maintain the biological diversity
which include; a) implementing selective logging, b) no logging at areas north of Petuang
and Tembat FRs for conservervation of Sumatran rhinoceros, c) gazzetting catchment area
as catchment forest, d) patrolling the highways between Tasik kenyir to Kelantan-
Terengganu border and e) provide sign boards to warn the motorist on the wildlife animal
crossing. Other long term mitigation measure to reduce human-elephant conflict (HEC)
includes creating and maintaining the corridors between the catchments and Taman Negara
and converting this area as wildlife reserve.
The impacts of the proposed project on the terrestrial fauna (small and large mammals), bats
and birds are predicted to be minimal during pre-construction and no mitigation measure is
required. However, the activities during construction stage such as construction of haul or
access roads is predicted to have direct impact on the wildlife activities (e.g. foraging
activities), especially medium and small animals. The presence of vehicles and heavy
machinery may increase disturbance and the number ‘road kill’ of wildlife. To minimize this
impact it is suggested to minimize the unnecessary opening, cutting and land clearing of the
area. Choosing the right alignment for new roads is also required to reduce erosion and also
to reduce cutting and earthworks to minimize disturbance to wildlife habitats. Further
mitigation measures to minimize the impact include rehabilitation of any opened areas to
provide habitat for wildlife and any sighting of wildlife need to report to the authority
(PERHILITAN) especially endangered species such as tapirs and tigers.
The existence of reservoir is also predicted to have an impact on wildlife movements,
roaming habitat and migratory route especially on larger mammal species. Larger species
that require larger area for foraging might be displaced and raiding adjacent plantations such
as at the north near Setiu. Some species can move further south to Taman Negara.
Currently, moving south requires them to pass through a relatively narrow corridor located at
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the west of existing Tasik Kenyir. The creation of the Tembat and Puah reservoirs will extend
the narrow corridor further north. The impact (the existence of reservoir) is expected to be
permanent. However the displaced wildlife (if any) can be mitigated through i) catching and
transferring to another areas (e.g. Taman Negara), and ii) guiding back to the existing
habitat. Again, as proposed above in the long term mitigation measure, the existing corridor
(west of Tasik Kenyir) needs to be preserved to facilitate free movement of wildlife to Taman
Negara. Otherwise, Taman Negara and the catchment will be separated and resulting in
forest fragmentation.
The existence of roads access inside the forest reserve will increase the opportunity for
illegal hunters. Also, the existence of main roads such as highway from Tasik Kenyir to Gua
Musang has also an impact on migrating wildlife such as elephant. Elephant requires large
area for foraging and the existence of this road will reduce their foraging areas and also
endanger the safety of motorists using this highway. Hunting activities can be stopped by
regulating the movement of vehicles that use the service road (or logging road) inside the
catchments (except Orang Asli). Patrolling of the area needs to be carried out regularly by
the Department of Wildlife and National Parks and the Forestry Department. Road signs
need to be provided along the critical section where elephant normally cross to warn
motorists on the presence of wildlife (e.g. elephants). Road signs are also important to
reduce the occurrences of ‘road-killed’ wildlife.
6.10 HERPETOFAUNA
Assessment of the herpetofauna in the proposed area includes presence, relative
abundance, and conservation status, based on primary and secondary data. The total
number of herpetofauna recorded from the six study sites in Hulu Terengganu was 302
individuals, from 15 families, 42 genera and 65 species (36 species of amphibians and 29
species of reptiles). Almost half of the total individuals was from Ranidae (52%), followed by
10% from Bufonidae, and 9% from Microhylidae. There were 29 species of reptiles from 9
families. Species richness, Shannon diversity and the Dominance Indices were analyzed
using Ecosim for the amphibian data only. Species richness ranges from 10.1 ± 1.46 to 13.8
± 1.49. Shannon’s index varies from 2.05 ± 0.17 to 2.40 ± 0.17, while Dominance index
ranges from 0.18 ± 0.03 to 0.29 ± 0.06. All indices estimated from the six study sites show
insignificant difference between any two pair of data sets. Previous study on herpetofauna at
the study sites recorded a total of 23 species of amphibians and 43 species of reptiles.
Possible impacts during construction include changes to specific habitat features, such as
loss of pools, riparian vegetation that would ultimately lead to loss or impairment of habitat
functions, such as breeding and rearing. Impact may affect early stages of life cycle the
most, being exposed to pollutions and increased sedimentation due to clearing of forest for
construction of access road and build up area, and disposal of tunnel excavated material.
Particularly hard-hit are animals that depend on riparian habitat. Some level of biodiversity
loss of herpetofauna, especially the tree-dwellers, would ensue due to clearing of the forest.
New access roads to dam sites provide access to previously remote areas for settlers and
hunters, thus increasing opportunities for exploitation of tradable animals. Mitigation
measures proposed are directed towards minimizing pollution and sedimentation of rivers
and water bodies, such as building roads along ridges, avoiding construction on highly
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erosive soils, installing permanent culverts under permanent roads, and designing drainage
for low-frequency storm runoff, and controlling illegal hunting of protected species. Habitat
loss at inundated areas is total for the herpetofauna, but compensation is only possible if the
State Government is willing to regazzette the remaining forest area as a water catchment
area to safeguard the remaining wildlife and vegetation, or to strengthen management of the
area.
6.11 FISH
A total of 36 fish species from ten families were found during the study period. Among them,
Cyprinidae is the dominant family (54.5%), followed by Bagridae (15.2%) and Channidae
(12.1 %). Thirty species were recorded at Sg. Terengganu Mati while 26 species were
recorded at Sg Tembat. Out of the 36 species, sixteen species are classified as common,
two species rare and the others are unknown. These species include the targeted species
for sport fishing with high commercial value such as Tor tambroides (Kelah), Poropuntius
deauratus (Daun), Neolissochilus hexagonolepis (Tengas) and Hampala macrolepidota
(Sebarau). Aquarium fish such as Rasbora spp. (Seluang) and Puntius lateristriga (Baguh)
can also be found in the area.
No endangered and protected fish species under Terengganu Fisheries Act 1988 such as
Arowana (Scleropages formosus) and Temoleh (Probarbus jullieni) were recorded in the
studied areas. Result also shows that the dominant species at Sg. Terengganu Mati is
Poropuntius deauratus (36.8%) followed by M. marginatus (Sia) (25.0%) whereas at Sg.
Tembat, P. deauratus is the dominant species (61.3%) followed by Hemibagus nemurus
(Baung) (7.1%).
Based on their general feeding habits, 11 species can classified as planktivorous, eight
detrivorous, seven carnivorous, three herbivorous and omnivorous and two insectivorous.
Many previous studies have shown that planktivorous species may not adapt to lentic
systems while detrivorous and carnivorous species are well adapted to new habitats
especially at littoral and shallower areas. Others such as Kelah, Daun and Tengas cannot
adapt to the lentic conditions, thus are strictly limited to lotic habitats at the upstream of the
proposed reservoir.
The main impact of logging and dam construction are soil erosion that leads to high turbidity
due to high Total Suspended Solid (TSS) and sedimentation of the nearby river. Suspended
sediment in the river water will eventually settle to cover periphyton, aquatic insect and
benthos which are important food source for fishes which lead to natural food source for fish
decreased. Turbidity in river water will reduce visibility of the riverine fish thus hampering
their ability to find food. The siltation of the fish spawning ground will reduce the hatching
rate of eggs due to unsuitable condition.
With the completion of the proposed dams, there are changes in fish population where big
cyprinids such as Kelah, Daun and Tengas will slowly diminish in population. On the other
hand, smaller cyrinids such as Barbonymus schwanenfeldii (Lampam sungai), Osteochilus
hasseltii (Terbui) and Labiobarbus lineatus (Kawan) will become dominant.
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Soil erosion and sedimentation which affect fish is minimal during pre-logging and pre-
construction stage. Existing logging track must be reused where available and the access
road must be kept 20m away from permanent water courses. At river crossings, temporary
bridges must be constructed or culvert and hollow logs must be used to avoid the
disturbance of the existing river flows and river beds.
The opening of access road may result in potential illegal fishing for consumption, collection
and sale of fishes by workers and outsiders. Workers are prohibited from illegal fishing and
must be supervised and monitored by the contractors from engaging in such activities. To
minimize illegal fishing by outsiders, the access roads should also be closely and strictly
monitored by the contractor particularly during spawning season (early rainy season
November) and during dry season (May - September) to maintain fish recruitment by
avoiding over fishing.
The main impact of logging and dam construction are soil erosion and sedimentation. To
reduce soil erosion which leads to high TSS reading in nearby river especially during wet
season plus to reduce water temperature due to lost of the canopy cover, a strip of 30m
buffer zone along the 3rd and above order river should be maintained. Selective logging must
be adopted for timber extraction in the catchment area. Erosion Control Plan must be
prepared and implemented by the contractors for the dam construction area. The retention
ponds should be regularly maintained by the contractors.
To minimize water quality deterioration due to decomposition of organic matter during
reservoir filling phase, clear cutting of the reservoir area should be carried out.
Filling of the reservoirs will force the riverine fish species to adapt to the new, less
favourable, lacustrine habitats. Filling of the reservoir will flood the existing feeding and
spawning ground (for rivers within the inundated area) of fish species causing fishes to
migrate upstream. The water level should be allowed to increase slowly (about one year) to
allow fish to adapt to the new environment or swim upstream.
The downstream of the proposed dams (4.14 km for Sg. Tembat and 4.82 km for Sg.
Terengganu Mati) will experience changes in hydrology because of flow regulation. The
induced desiccation of rivers below dams (when the water is regulated) will influence the
population of fish or aquatic organism and flora that are dependent on the river flow
downstream. To sustain the ecological condition of the downstream rivers, minimum flow of
1.0 m3/s and 0.5 m3/s, should be maintained at Sg Terengganu Mati and Sg Tembat
respectively as recommended by EFA. With this minimum flow, water quality and hydraulic
simulation results indicate that the DO and TSS levels right after Sg. Tembat and Sg.
Terengganu Mati Dam area are 5.5-8.5 mg/L;0.8-12 mg/L and 6-7.5 mg/L; 3.4-10.0 mg/L,
respectively. Simulation results also indicate that the water level downstream of the
proposed dam at Sg. Tembat and Sg. Terengganu Mati are 0.2-1.6m and 0.3-1.2m,
respectively. These conditions, are considered as clean water and adequate for fish and
others aquatic organisms to survive in the new environment.
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6.12 BENTHOS AND MICROEINVERTABRATES
Physically, Sg. Terengganu Mati and Sg. Tembat are characterized by fast flowing water and
cobble and sandy are dominant substrates. Both rivers also drain through dense secondary
forest and exhibit steep slope.
Both rivers support high diversity of benthic macroinvertebrates and phytoplankton and
these organisms were distributed evenly along the rivers. Benthic macroinvertevbrates is
dominated by Arthropoda phylum. The presence of pollution sensitive families such as
Ephemeroptera and Plecoptera indicates that the existing ecosystems are clean and not
seriously disturbed.
Chlorpohyta and Bacillariophyta (phytoplankton), which are common phyla in freshwater
ecosystem, were dominant in both rivers. The presence of pollution sensitive species in both
rivers demonstrates that both rivers are clean. Calculated diversity indices indicate that both
rivers are not stressed and are in balance condition.
Only logging activities are predicted to cause physical (sedimentation) and biological
(sewage effluent) to the aquatic communities. Activities such as road construction, tree
felling, river crossing and log materials skidding and hauling can cause erosion which
consequently will enter the river ecosystem. Worker biological waste can contamínate river
system if not systematically managed. However, all impacts are predicted to be temporary
and will be rehabilate after the logging is completed. In order to minimise the logging impact,
all activities should be conducted according to the guidelines for reduced impacts logging in
Peninsular Malaysia. Selective logging is proposed to be conducted since it produced lower
sedimentations load compared to clear logging. Temporary bridge should be used for large
river crossing and hollow timber or culvert for small river.
Most activities during pre-construction are expected to cause minimal impact with temporary
effects to the aquatic communities.
Most activities during the construction period are expected to cause significant adverse
impacts to the aquatic communities. Permanent habitat changes will occur within the
proposed dam construction area, which can change benthos composition and diversity.
Effects of sedimentation and river habitat alteration are expected to give the most significant
adverse effects to the aquatic organisms. Total suspended solids cause by dam construction
activities is much higher than existing condition. River crossing activity is expected to cause
a significant residual environmental effect to the aquatic communities and the use of
temporary bridge is recommended to minimize the effects.
The formation of wetland/fringe area during the water impoundment and dam operation will
promote the dominance of lenthic communities and reduction of lotic communities. The
water fluctuation due to the electricity generation requirements will reduce diversity and
density of benthic community. However, for longer period, both communities will be able to
adapt to the new environment and reach ecosystem equilibrium.
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During operation, benthos and phytoplankton communities at the river stretch downstream of
the dam will be affected due to the lesser water discharge. Benthos density and biomass will
increase but diversity will decrease.
6.13 SOCIOECONOMY
The proposed project is located within a forest reserve; thus there is no residential area in
close proximity to the site. The nearest village (Kg. Basung) is 26 km away. In total, six
villages are located between 25 to 50 km from the project area, namely Kg. Baung, Kg.
Payang Kayu, Kg. Sg. Berua, Kg. Basung, Kg. Pasir Dula and Kg. Padang Setebu. A socio-
economic survey involving 275 households in these villages was conducted to determine
their socio-economic profile as well as ascertaining their perception on the proposed project.
A number of heads of household of the Orang Asli community were also interviewed. In
addition, 33 officers/representatives of relevant government bodies and NGO were
interviewed to supplement the findings of the socio-economic survey.
The socio-economic survey reveals that the majority i.e. 64.3 percent of the villagers and
agencies are aware of the proposed project. Most villagers agree with the construction of the
project (Totally agree 6.1%, Agree 47.4% and Agree with condition 5.7%). Among the Orang
Asli, however, 66.7 percent are opposed to the proposed dam, mainly because of their
concern that the project poses a threat to their source of livelihood. However this data need
to be interpreted with caution, since only six Orang Aslis agreed to respond to the question
of whether they agree or disagree with the project. Of the six, four disagreed with the
construction of the dam.
The results of the survey show that the top-four potential benefits expected by the villagers
are income-related. The top most expected benefit is “job-creation during the construction”.
The representatives of the agencies have different priority as far as the benefits of the dam
are concerned. They put highest emphasis on the development of the infrastructure. The
Orang Aslis were also asked about their opinions on the potential benefits as the results of
the construction of the new dam. Only one of the six respondents sees “income-related”
potentials of the proposed project as a benefit.
The villagers are most worried about the potential negative impact of the proposed project
on the flora and fauna as well as on the wild life. They are also worried that the proposed
dam will pose danger to the villagers. The representatives of the agencies rank the
“environment-related” damages top in the list of potential adverse impacts of the proposed
dam. These adverse impacts include the potential damages on ”flora and fauna” as well as
on “wild life”.
The Orang Aslis are particularly concerned with the potential negative impact of the
proposed new dam on livelihood, hunting activities as well as the flora and fauna. Next, they
are also worried about the impacts of the proposed dam on the logging activities, opportunity
to open up new land and agricultural activities.
The major socio-economic impacts of the project include unhealthy and uncomfortable living
condition in the base camp; workers’ safety; illegal hunting, poaching and harvesting of
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valuable forest produce because of access; reduction in the size of Orang Asli’s roaming
area and thus the source of livelihood; and positive impacts on employment opportunities.
To mitigate the impacts, several mitigation measures are proposed. These include the
provision of proper basic facilities (water and electric supply) and maintain hygienic
environment for workers base camps; briefing and supervision of workers so that they will
not engage in illegal hunting, poaching and harvesting of forest produce; consideration for
possible compensation to affected Orang Aslis; provision of appropriate training to enhance
the skill of locals especially Orang Aslis so that they are able to participate in the project;
employment of local workers for suitable and appropriate jobs to reduce dependency on
outside workers.
6.14 PUBLIC HEALTH
A public health study was conducted in the five villages in Hulu Telemong district which in
vicinity to the proposed project. This study aimed to obtain the existing health conditions of
the local population, to identify the mosquito population and their distributions and to
determine the prevalence of water and vector-borne diseases in the area and finally to
assess the possible impact of the proposed project to the public health. Several
methodologies were carried out to address these objectives.
This study is divided into three sections; community health, parasitological and
entomological sections. The health survey has obtained a very good coverage (73.4%).
The baseline information shows that the health problem of this community is related to the
basic infrastructure in sanitation and water resources. There were some improvements in the
water supply in this present survey where the reliance on the piped water supply has
increased from 16.8% in the 2003 survey to 74.8% in the present survey. There are some
improvements in the health conditions of the communities which were shown by the lower
prevalence of the communicable and chronic diseases as compared to the previous surveys.
Based on the parasitological survey, intestinal parasitic infection is still an important public
health problem in the local population especially Giardia duodenalis and Entamoeba
histolytica. However, the infection of helminths had shown a decreasing trend.
During construction phase, the workers base-camp is the potential source of mosquito
breeding if their sanitary condition is not well maintained. In addition, the transmission of
dengue vector is highly associated with human activities and development. The risk for
dengue and dengue haemorrhagic fever is high due to the migration of population within the
proposed development area. Land clearing activities could expose the streams and provide
the breeding area for Anopheles maculatus, the primary vector for malaria. The basic
amenities for the workers such as the safe and clean water supply should be provided.
Proper solid waste disposal system is necessary. Pit latrine should be built for the workers
and well maintained. Pest control and the proper environment sanitation are important to
prevent the transmission of the vector and water-borne and zoonotic diseases. To prevent
breeding of vectors of DF/DHF, unwanted containers, should be disposed properly. To
minimize breeding of Anopheles maculates, covering the exposed streams with coconut
husks is recommended.
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During operational phase, the downstream rivers which are the water resources for the
affected population would not be affected by the proposed development. Therefore, this
would not have any impact to the transmissions of the waterborne diseases. In the current
study, very few An. maculatus were captured in the villages and there is no malaria case in
this area. It is important that they remain so during and after the construction of the dam.
However, any introduction of a new case from an infected person, such as any illegal
migrant worker, could trigger transmissions of the infection. Thus this area remains a high-
risk area for an outbreak at any time. The primary vectors for Japanese encephalitis (Culex
gelidus) and filariasis (Mansonia dives) and vectors for dengue (Aedes albopictus) are
present in this area. The risks to infection by Culex spp and Mansonia spp. are predicted to
be low in this area if proper sanitation is provided (proper sullage system) and livestock
rearing is controlled in the area. It is important that all workers especially foreign workers in
the project be screened for malaria, filariasis and other vector borne diseases. The
recruitment of these workers must follow the legal procedures which require health
screening of these workers. Constant periodic vector surveillance on the abundance and
composition of the vector species in the zone of influence is needed in order to assess the
actual impact of the proposed development.
6.15 ECOTOURISM
Data for this study are collected from published and unpublished materials, interviews and
field surveys. Flora, fauna, landforms and scenery constitute ecotourism resources in the
study area. The study area is still densely forested and rich in fish species, despite being
logged and over-fished. Other resources include a large man-made lake, watwerfalls,
mountains and caves. At certain locations, the study area is blessed with scenic beauty,
where the views of mountain ranges, forest covers, lake, islands and man-made structures
can be seen.
At present, the accommodation establishments provide 115 rooms, 252 chalets, 2 hostels
and 15 boathouses. The number of tourists coming to Tasik Kenyir has been declining since
2000, but began to rise again after 2005. In 2006, there were almost 50,000 tourist arrivals
recorded at Tasik kenyir. With the completion of East Coast Highway and Kuala Berang-
Gua Musang-Pulai Highway, the industry players are optimistic that tourism at Tasik Kenyir
will rejuvenate. Fishing, camping, picnicking, boat-riding, kayaking, rafting, jungle trekking,
caving and resting are among the recreational activities that the tourists pursue.
The potential impacts of the proposed project during the construction stage are the water
flow in Sg, Tembat will be regulated and reduced, Tembat Waterfalls will be lost
permanently, fish population in Sg. Tembat will be reduced, and boat trips bringing visitors to
Sg. Tembat will be declined and this may adversely affected the income of boat operators.
To mitigate the impacts, it is suggested that new suitable activities, such as picnicking,
camping, environmental education and environmental walks along Sg. Tembat, be
promoted.
During the operation stage, it is anticipated that there will be beneficial impacts on tourism
whereby tourism activities and businesses will be expanded to the two new lakes at Puah
and Tembat Reservoirs. There is a need to introduce some measures on tourism
development at the project area so as to prevent over development.
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6.16 ARCHEOLOGY
There is no evidence of prehistoric archaeological sites within the proposed project site.
However, any discovery of artifacts during project implementation should be reported to the
authorities such as Department of Museum Negeri Terengganu, Department of Museum
Malaysia and Department Heritage of Malaysia.
6.17 ENVIRONMENTAL ECONOMIC SECTORS
Electricity Supply
The project has been analysed with configurations of FSL296/212MW/405GWh and
FSL290/212MW/385GWh. Both are viable before environmental costs are considered
(FSL296: NPV159mill, IRR 14.39%; FSL290: NPV141mill; IRR 14.0%). The FSL290 option
is consider best when environmental cost are considered.
Timber and Forests
Some 55km2 of forests at the proposed Puah dam were clear-felled between 2003 and
2005. If the project is implemented, some additional clear-felling would have to be carried
out. The incomes from this clear-felling is greater than the 50 year sustainable timber
incomes from the catchment. The proponent should therefore not need to pay compensation
for timber revenues, and Terengganu State has a unique opportunity to conserve the
remaining catchment for biodiversity-, tourism-, energy- and cultural benefits.
Greenhouse Gases and Carbon Balance
Power Density (PD) is defined as installed capacity (MW) divided on reservoir area (km2). If
PD is 4 or smaller, CO2 quotas can not be accredited. The FSL296/212MW option has a
PD 3.5. The FSL290/212MW has PD=4.1 and can apply for CER credits. A successful
application will give additional incomes of MYR15.6mill/year. This would add MYR96mill to
the project NPV over 10 years. Comparable hydro projects have been approved by
UNFCCC in other countries.
Biodiversity
Forests in Pahang and Terengganu are nearly cut in two by deforestation west of Kenyir
lake. The Puah reservoir will lengthen and narrow this rainforest corridor and make it more
fragile. Among seven organism groups studied, local loss of species can be 200-300
species. Mitigating by managing individual species could cost MYR30+mill. Catchment
conservation, with particular attention to the north-south habitat corridor, will be more
effective. Catchment protection can be implemented without a net loss to society because of
clear-felling incomes in reservoir areas.
Water Quality and Supply
There is excess supply of water in Terengganu. Additional dry season supply from the
proposed project will only be of benefit in the future, and has an estimated option benefit of
NPV 2.9mill. Deterioration of water quality in the Puah and Tembat rivers as well as in
surface water of the north and west sections of the Kenyir Lake may affect lake tourism and
recreational fisheries.
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Tourism
Diversion of water from Puah and Tembat rivers will be damaging for two resorts since the
rivers are the main attraction. The proposed new reservoirs will have greater water level
variations than Kenyir lake. Any new resort developments are therefore likely to be linked to
the existing Kenyir lake. The project can have a negative impact on tourism in the NW
section of Kenyir lake of up to MYR27mill. Maintenance of adequate minimum flow and
improved forest management may compensate for this.
Rural Economy and Fisheries
No net benefit on commercial fisheries is expected. Probable negative impacts on
recreational fisheries area considered under impacts on tourism. The economic impact on
Semoq Beri Orang Asli were explored by scaling the economy per family to the Malaysian
per-capita Gross National Income (GNI) (MYR24000/year). If the scaling of income is
adopted, the compensation costs are unlikely to fall outside the range of MYR3-4mill.
Cost-benefit Analysis
In a worst-case scenario, assuming maximum mitigating cost in all sectors, the project has a
benefit/cost ratio of 1.3 to 1.35. This ratio is sensitive to capital costs. In a good case
scenario without cash timber compensation and where biodiversity mitigation is achieved by
protection of catchment forests, the benefit/cost ratio is 19.7. The best-case scenario is that
the project in addition achieves CO2 quota accreditation. In this case the project has a
benefit/cost ratio of 38.
6.18 RISK ASSESSMENT
Based on the work in this study, the average individual risk posed by the proposed Tembat
Dam and Puah Dam would be 4.46x10-5 fatalities per person-year. This value is considered
high as compared to the acceptable involuntary risk level of 1x10-6 fatalities per person-year.
However, there are no settlements downstream of the proposed Puah and Tembat Dam and
all the water held up by the dams flow into Tasik Kenyir if ever there is an occurrence of dam
break of either dam. Hence there is no individual that will be involuntarily exposed to the
risks posed by the existence and operation of the proposed dams
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